Export process of wire and cable products (1)

DATE: 2017-7-29 17:20:47 | HITS:83

Chinese is an import and export trading power, the production of industrial products has been close to the world advanced level, China manufacturing has been enjoyed a high prestige in  the world and has been exported to Asia, Europe, the United States, Africa, Oceania and many other countries; As a commercial representative of a cable manufacturer foreign inquiries are frequently received during the work. Then, as a business representative of the cable industry, what are the basic knowledge of the export of wire and cable products? What issues should we pay attention to when making export orders? Today, we will popularize the basic knowledge of wire and cable products export, so as to be able to cope with it in actual operation;

The export process of wire and cable products mainly includes: order quotation, order negotiation (product price, payment method, delivery method, delivery date, etc.), contract signing, order production, product packing, customs clearance, shipment, transportation insurance, bill of lading, settlement of exchange.

1、Order quotation 

Target customer inquiry is the beginning of the export of wire and cable products. Prior to customer inquiry, technical data, production standards and material list of related products are provided. Exporters should fully understand the technical requirements, raw material quality, product structure, production process, product specifications, models, technical parameters of products, and production standards of products required by customers; Also understand the product packaging requirements, delivery deadlines, trading mode of transportation, delivery methods and other content of the initial offer;

2、Order negotiations (signed)

Most of the time, offering the first offer to the customer cannot be closed; in the age of e-commerce, there is no secret of any product price. A customer's order is likely to inquire at the same time a number of manufacturers, and compare, bargain; Under normal circumstances, after 2-3 rounds of price negotiations, orders can finally be determined;

The exporter on the basis of the product name, specifications, quantity, price, amount, packing, shipment, payment, settlement, claims, arbitration and other content talks, After the two sides have reached a consensus, the purchase contract shall be signed.

3、Payment methods for international trade

Owing to the space span of international trade, payment methods and payment security are especially important to exporters. There are mainly four ways of payment in international trade;

3.1 letter of credit (L/C)

A letter of credit is a written document issued by a bank for a conditional undertaking to pay. The time limit for shipment of the export goods and the date of presentation of the L / C should be within the validity of the L / c. Payment by L / C is divided into clean letter of credit and documentary letter of credit. The documentary letter of credit is accompanied by the documents specified in the letter of credit, clean letter of credit do not attach any documents.

In international trade, the majority of the letter of credit as payment, The opening date of the L / C shall be clear and complete. Several state-owned commercial banks China, such as Chinese bank, construction bank, agricultural bank, Chinese Chinese ICBC, will be able to issue the letter of credit(The opening charges of several banks are 1.5 per thousand of the opening amount.)

3.2 D/P.D/A documents against payment and documents against acceptance

D/A is called documentary against acceptance (usually with a time limit). The importer makes a written guarantee to the bank and guarantees payment within the agreed number of days. The bank first issues the bill of lading to the importer.
D/P is called document against payment. the bank will deliver the relevant documents to the importer after the importer pays the payment to the bank.

3.3 T/T telegraphic transfer payment

T/T is a commonly used method of payment in foreign exchange for cash settlement in trade. The fee is low, but the risk is greater than the LC.
The specific method of operation is: 30% before TT, the exporter provides his own foreign exchange bank account to the importer, The importer sends to the exporter the appointed bank, according to the agreed amount remittance, The bank charges a handling fee of $5-30. In one or several working days, you can check whether the remittance arrives or not. Then the 70% balance, T/T. After the exporter issues the goods, The original bill of lading or telex release bill of lading cover chapter should be in their own hands. Send the shipping documents and COPY of the bill of lading to the importer and let them remit the balance. After confirming the receipt of the balance, send the B / L to the customer. This completes the entire T/T process.

3.4  CASH

Cash payment is collect on delivery, This method of payment is only suitable for small commodity transactions, customers pay the bill, the exporter shipped according to customer requirements to the designated port or warehouse, the transaction is completed;
 
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Sorting out: Lu Shaoshan
Date: 2017, 07, 28

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